Hudson Technologies Reports 20% Revenue Growth to $74M in Q3 2025

Hudson Technologies, Inc. reported a notable increase in financial performance for the third quarter of 2025, with revenues reaching $74.0 million, a 20% rise from $61.9 million in the same period last year. The company's gross profit also improved significantly, totaling $23.7 million, up from $15.9 million, resulting in a gross margin of 32%, compared to 26% in the prior year. This growth was primarily driven by increased sales volume and higher selling prices of refrigerants. However, net income for the quarter was $12.4 million, reflecting a $4.6 million increase from $7.8 million in the previous year, despite higher selling, general, and administrative expenses.

For the nine-month period ending September 30, 2025, Hudson's revenues were consistent at $202.2 million, slightly down from $202.5 million in 2024. The company experienced a 3% increase in sales volume, which was offset by a 3% decline in selling prices. Gross profit for this period was $58.6 million, down from $59.9 million, with a gross margin of 29%, a decrease from 30% in the previous year. The decline in net income to $25.3 million from $27.0 million was attributed to lower gross profit and increased SG&A costs.

Strategically, Hudson Technologies completed the acquisition of USA United Suppliers of America, Inc. in June 2024 for approximately $20.7 million, which has expanded its customer network and enhanced its refrigerant distribution capabilities. The acquisition is expected to provide incremental access to recovered refrigerants and strengthen the company's geographic footprint. Additionally, Hudson has been awarded a new five-year contract with the U.S. Defense Logistics Agency, continuing its long-standing relationship with the military.

Operationally, Hudson reported an increase in trade accounts receivable, which rose to $25.4 million from $13.6 million at the end of 2024, primarily due to seasonal timing. The company also maintained a strong cash position, with cash and cash equivalents at $89.7 million, up from $70.1 million at the end of 2024. The company’s working capital increased to $170.3 million, reflecting a $22.6 million rise from the previous year, driven by higher cash reserves.

Looking ahead, Hudson Technologies anticipates continued growth in its refrigerant sales and services, supported by its strategic acquisitions and contracts. However, the company remains cautious about potential market fluctuations, regulatory changes, and the impact of economic conditions on its operations. The management believes that it will be able to meet its working capital requirements through anticipated cash flows from operations and available funds under its credit facility.